Saturday, July 11, 2009

A visit to Vista Residences

I visited Vista Residences show flat today and was appalled by the prices of private property prices! A 1 bedroom 646 square feet unit costs $1370 PSF! After factoring all stamp duties, legal fees, it will cost almost $1400 PSF. Yet there are only three 1 bedroom units left and all 2 bedroom units are sold! The project is at least 80% sold at the 3rd week of launch!

Consider a district 12 property, selling at this kind of price and high take up rate, does it feels like a bubble brewing?

The Toa Payoh MRT station was not within sight and I have to walk at least 18 minutes to reach Toa Payoh central. This is a far cry from the 7 minute stated on papers. It is near PIE, which means the noise from expressway will probably accompany you everyday. Traffic was quite bad even during off peak hours, the lanes are narrow and I do feel some stress navigating the neighbourhood.

Of course it was the price that totally put me off! The stamp duties and legal fees are not even absorbed. The sales agent even has the cheek to ask me to pay a 5% booking fee within 15 minutes of viewing. He thought I was buying vegetables in the market.

I would have to pay 3% more if I opt for interest absorption and payment deferment.

Consider Vision Crest, a district 9 property near Plaza Singapura. It was initially launched at $1100 PSF in 2003 (recession) and peaked at $2500 PSF. It is currently selling about $1650 PSF, which has an average of $5.92 median rental (1Q09 data).

As I stated in my earlier posts, I am still looking for a $600 PSF freehold property near novena area, for investment purposes. The current prices will definitely be unsustainable as the recession’s impact has yet been unleashed.

I foresee some cheap lelong sale coming up in 2010 and 2011 when the backlog of properties are being cleared by developers and huge influx of projects TOP.

Hopefully by then I have enough cash and CPF to scoop up nicely TOP apartments and can see what I buy.

Buying over priced apartments based on photos, artist impressions, showrooms, floor plans, architectural models and imagination are still too sophisticated for me now.